The National tribune., 1887-01-27

Ne-4sss-zsss@-' waste OF time and OF space
Lottery budding. to analyze the schemes
the only questions that in
teres the lottery ticket holdcrsare: Is the scheme
honestly drawn7 and. is the company financially
respousible7 To satisfy itself these points
member of the Chronicle staff was sent from san
Francisco TO this city investigate the affairs Of
the Louisiana State Lottery Company, and 20 wit
ness the extraordinary drawing which took place
yesterday.
LEGALITY or THE LOTTERY.
The first duty Of the Chronicle reporter was 10
ascertain the legal status Of the concern Does Il
have a legal exis,enee?" was the question he put
to a leading member Of the Louisiana Bar. and
gentleman who will soon occupy a high judicial
position in the State.
"Of course 1t has" he replied very promptly.
" Its franchie is now unquestioned in law. In Ices
the Legislature Of Louisiana enacted a law entitled
An Act To increase the OF the State and TO
authorize the incorporation Of the Louisiana State
Lottery Company, and to repeal certain Acts now
in force. This Act provided that foreign lottery
tickets should be sold within the State and gave to
certain citizens named authority to organize n cor
poratOn to protect the State against the great
losses heretofore incurred in sending large amounts
OF money to foreign countries for the purchase of
lottery tickets, to establish a solvent and reliable
home institution and to insure perfect fairness and
justice in the distribution of prizes The capital
stock fixed at 81 coo COO in shares of 500 each.
There We're provisions for Board of Directors and
all the corporate rights to and to be sued etc.
The duration of the lottery was to be for twenty
five years. 1t was to pay $4,000 year to the edu-
cational fund, and was required to give bonds to
carry out these provisions. The Constitution of
Louisiana, adopted in 1879, touches the lottery
question as follows:
ARTICLE 167. The General Assembly shall have
authority grant lottery charters al UrivilPVes.
provided, each charter or privilege shall pay not
less than $4,000 per annum in money into the
treasury of the State; and provided further, that
all charters shall cease and expire the Ist of
January, 1885, from which time all lotteries pro-
hibted in the State.
The $4,000 per annum now provided by law to
be paid by the Louisiana State Lottery Company,
according 10 the provisions of its charter granted
in the year 1868. shall belong to the Charity Hos
piial of New Orleans and the charter Of said COM
pany is recognized a contract binding the
State for the period therein specified, except its
monopoly clause, which is hereby Gbrogated, and
al laws contrary to the provisions of this article
are hereby declared null and void; provided, said
company shall file n written remuneration of all its
monopoly features in the Office of the Secretary Of
state within 60 days after the ratification of this
Constitution.
These conditions were promptly accepted by
The Louisiana Lottery Company; indeed this
constitutional provision guaranteed the Company
exactly what it was contending II possessed-a
contract with the State OF Louisiana. This posi-
ton has been further strengthened by decision
Of the United States Supreme Court rendered
within few days. An effort made to tax the
lottery company under act taxing stockholders
in corporations for State and city purposes. This
tax the Company resisted, on behalf of its share
holders on the plea that the Company had a valid
and bona fide contract with the State and that IL
committed the whole tax by the payment of 5000
n year to the Charity Hospital. This plea was
supported by the United states Supreme Court.
which holds that the lottery company does have
legal and binding contract with the State Of Louis
ana, and that any attempt to extort from il q sun
In excess OF the $1,000 is Illegal. This decision,
however carries with it benefit to the Louisiana
Lottery something more important to the managers
than the mere saving of dollars and cents-recog-
milton by the laws of Louisiana and of the nation
as a corporation engaged in q legitimate business
under a legal and valid charter. This recognition
Of the validity Of contract gives The Louisiana
State Lottery what no lottery has ever had in
America since the days of Washington and Jefier-
son, when the Presidents authorized to draw
lotteries for the benefit Of the national captaI-a
legal existence for the period of its charter.
RECOGNIZED INSTITUTION.
The legal status of The Louisiana State Lottery
Is thus clearly and indisputaby established One
cannot long remain in New Orleans without dis
covering that 1t il one of the recognized institu-
tons of the city, and that possesses the fullest
confidence of the people. Whatever the rest of the
world may think of lotteries, New Orleans believes
in them. Interviews with the Presidents Of the
leading Banks, merchants and planters. not only
proved this, but the further fact that these men
have faith in the honesty Of the management of
the drawing and the perfect solvency of the insti
tuition. Indeed IL Is generally asserted that the
Louisiana Lottery is stronger than any bank in the
South, and all the banks cash its prizes at sight
Its stock, which is regularly quoted on Change,
sells at $3.50. Its par value IS 500. The manage
ment comprises the foremost citizens of Louisiana,
financially and socially considercd-men who are
pen-handed. broad and liberal.
O. Kohn, President of the Union National Bank
said: 81 am not interested in lotteries in any way
and am opposed to gambling in any form guise
il may take. / do not think gambling should be
encouraged, but IL ever an institution deserved the
frindship of people The Louisiana State Lottery
deserves the friendship of the people of this section
1t has DONE and is constantly doing, great work
for humanity. No one can imagine the fIr-reachng
charity of that institution. Its vaults always
open to the poor and the needy. IL is rich corpo-
ration, perfectly responsible, and conducted with
the strictest integrity"
J. ii. oglesby, President of the Louisiana Ma
tional Bank, u conservative, careful business man,
who does not believe in lotteries, said: THE COM
pany is thoroughly responsible, Is carefully and
honestly conducted"
A Baldwin. President of the New Orleans Ma
tiona Bank. said that the managers of the lottery
were thoroughly honest men, responsible and
charitable almost to n fault.
i. o. Fazende, of the banking house Of Fazende
& Seixas, said: There is no stronger or more re-
sponsbIe corporation in America than The LOUIS
lana State Lottery Company. The standing oil the
managers in the community would preclude the
idea Of dishonesty in connection with it, 1t could
upon its honesty. 1t is strictly honest, and has
the full confidence OF our people.
These sentiments were expressed by every promi-
nent man seen by the Chronicle reporter, and his
interviews covered fifty different persons, In every
walk of life. Not one man was found who had an
evil word for the Lottery. though nearly all depre
Gated the drawing of lotteries.
THE MANAGEMENT.
The reporter next presented himself at the man
agement of the Company. and frankly stated the
object of his mission. DIR. NJ. a. Dauphin the Pres-
dent of the Company, promptly invited the reporter
TO feel at liberty examine the conduct of the es-
Enlistment. The Company is the owner of its own
building at the corner of st. Charles and Union
streets. IL Is handsome and substantial struet-
ure, three stories high, and 10 wholly devoted to
the uses Of the lottery. An army Of clerks are
engaged in keeping up the record of tickets,
correspondence and books of this corporation.
The system of the Office is admirable it is perfect
complete record Is kept Of every letter received
aud thousands of dollars pinned to letters in which
they were received are found in a sort of a dead
letter box. being letters that had not been signed